To The Moon

On 20 June (Thursday), we saw the stock market opened with gains, which was driven by strong performance from $NVIDIA Corp(NVDA)$ shares which went up as much as 3.8% earlier.

S&P 500 surpass the 5,500 level for the first time, thanks to Nvidia earlier gains. The Nasdaq also got an early gains of 0.4% but only to close the day session with a 0.8% decline. Major indices hit session lows as NVDA shares turned negative for the day.

Heavily-Weighted Stocks Decline Influence Index Performance

There were also declines in other heavily-weighted stocks that influenced index performance significantly. Significant declines from names like Apple (AAPL), down 2.2%, Broadcom (AVGO), down 3.8%, and Microsoft (MSFT), down 0.1%.

Many stocks saw a pullback due to normal consolidation efforts after a strong performance earlier in the month. Decliners outnumbered advancers by an 11-to-10 margin at the NYSE and by a 4-to-3 margin at the Nasdaq.

DJIA Managed To Close Higher

The Dow Jones Industrial Average closed 300 points higher despite the market saw an overall downside bias. A significant gain in Salesforce (CRM), which was up 4.3%, contributed to the Dow's outperformance.

S&P 500 Energy Perform Due To Rising Oil Price

The S&P 500 Energy sector led the the sectors with a jump of 1.86% because of rising oil prices closing +0.8% higher at $81.34/bbl. Two other sectors, Utilities and Financials also managed to gains of 0.9% and 0.56% respectively.

The Info Tech sector of the S&P 500 has been the top performer in 2024, with a year-to-date gain of 31.5% and a 44.6% increase over the past year. But yesterday (20 June 2024), the information technology sector was the worst performer logging a 1.6% decline due to losses in its mega-cap components.

Consumer Discretionary also saw 0.45% increase and Healthcare was up 0.37%.

Significant tech stocks according to quantitative ratings include GoDaddy (GDDY, Financial) and Immersion Corporation (IMMR, Financial), both receiving high marks for their growth and profitability.

Note Yield Up As Rising Market Rates Came In As Limiting Factor

The rising market rates was seen to act as limiting factor. This helps to push the note yield higher, with the 2-year note yield increased by three basis points to 4.75%, and the 10-year note yield climbed four basis points to 4.27%.

Stocks To Watch

Nvidia (NVDA) continued to dominate headlines as it maintained its position as the largest publicly listed firm by market capitalization. Despite a strong start, the stock reversed course to close in the red. Nvidia's market cap has reached an impressive $3.33 trillion, driven by the surging demand for its AI chips, which have seen the stock price skyrocket 174% in 2024 alone.

Goldman Sachs analysts have identified several stocks that could benefit significantly from the adoption of artificial intelligence. Companies like Pinterest (PINS) and New York Times Co. (NYT) are expected to see substantial increases in earnings due to AI-driven productivity gains.

Zoom Video Communications (ZM) snapped a six-day losing streak, closing up 3.74%. Despite recent struggles, the stock has shown some resilience, with Seeking Alpha's Quant Ratings giving it a Hold rating and high marks for profitability.

TikTok attorneys have asked a U.S. court to strike down a law requiring the social media app to divest from its Chinese parent company, ByteDance. The law, signed by President Joe Biden, mandates the separation by January next year, but TikTok argues that such a split is not feasible.

$Taiwan Semiconductor Manufacturing(TSM)$ received a price target upgrade from Bernstein to $200 from $150. Analysts noted strong demand in high-end phone and advanced nodes, with data center AI revenue rising as expected. The company is projected to exceed its 2024 guidance.

From the MACD and KDJ indicators, I would think that we might see some selling off, so I would wait for the price consolidation to happen before considering a position.

$Advanced Micro Devices(AMD)$ shares gained over 7% after Piper Sandler reiterated its Overweight rating. The semiconductor company is expected to have bright prospects in the second half of 2024, with new chip releases like the MI300 series driving future growth.

There might be a buying potential happening soon, I would think we could be looking around $155, because the MACD signal for crossover is not clear, and KDJ is trying to make an upside with J value rising.

I would be monitoring for the KDJ to make a clearer signal with MACD showing crossover upside.

Netflix (NFLX) snapped a seven-day winning streak, closing down 0.97%. Despite the dip, the stock has gained 56.2% in value over the past 12 months. Analysts have given Netflix a "Hold" rating, with high marks for profitability and momentum.

Summary

I would think the consolidation could continue today (21 June) as there might be some profit taking in some of the stocks with so many upside sessions, hence, I would think we continue to monitor how the market might be reacting.

Appreciate if you could share your thoughts in the comment section whether you think stock market would still be in downside bias and we could still see consolidation happening?

@TigerStars @Daily_Discussion @Tiger_Earnings @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.